An action plan has been prepared to fully implement the recommendations of the High-Level Economic Reforms Advisory Commission. The committee formed to develop and submit this action plan—chaired by former Finance Secretary Rameshore Prasad Khanal—has completed the report and submitted it to the Ministry of Finance.
The action plan outlines 408 activities to be carried out over the next three years. Khanal said the Office of the Prime Minister and Council of Ministers has finalized the action plan based on the Commission’s recommendations, and it is now the government's responsibility to implement it accordingly.
The plan includes key reforms such as gradually narrowing the interest rate corridor through monetary policy, cutting government expenditure, reducing indirect tax rates, lowering production and business costs, formulating a strategy to foster an investment- and business-friendly environment, and increasing the eligibility age for the senior citizen allowance from 68 to 70 years.
It also emphasizes allocating budgets to well-prepared projects to ensure timely completion, reprioritizing ongoing initiatives, retaining employees on the same project throughout its duration, allocating sufficient resources for national pride and multi-year projects, and advancing new projects only if financial resources are secured.
The plan proposes liquidating state-owned enterprises such as the Janakpur Cigarette Factory, Butwal Yarn Factory, Nepal Engineering Consultancy Service Center, National Construction Company Nepal, and Nepal Orient Magnesite. Their immovable assets will be transferred to the government and managed accordingly. Additionally, the plan calls for restructuring Nepal Airlines Corporation within two years and appointing an external strategic partner for its professional management.
Other key measures include issuing infrastructure bonds for high-yield projects, maintaining integrated credit information for banks, financial institutions, and cooperatives, restructuring the Nepal Stock Exchange, and taking strict actions such as freezing the passports and assets of cooperative directors who embezzle funds or default on loans within six months.
A single-window system will be implemented for registering all types of companies. Business registration will be made free, a dedicated law will be introduced to regulate foreign investment, and policies on remote work, agricultural market regulation, and digital transformation will be introduced. Internal and external electricity transmission lines will be expanded to boost consumption, and a comprehensive ecosystem for the IT sector will be developed.
The plan also proposes formulating a long-term integrated infrastructure master plan and utilizing various climate finance instruments—such as carbon taxes and green finance—to enhance Nepal’s competitiveness in accessing international climate funding.
Following a decision by the Government of Nepal on April 15, the action plan was authorized to implement the recommendations of the Commission chaired by Khanal. While the report focuses primarily on economic reforms, it also includes sector-specific recommendations, which have been incorporated into the action plan.
Each concerned ministry will be responsible for implementing the activities within its jurisdiction by delegating tasks to subordinate departments, agencies, offices, or divisions. Ministries are expected to prepare clear, time-bound action plans with milestones and incorporate them into their annual programs. They must also submit detailed implementation plans to the Office of the Prime Minister and Council of Ministers.
The Prime Minister’s Office will oversee the monitoring and evaluation of the plan. In addition, facilitating ministries and agencies will be required to coordinate, support, and guide the execution of activities. Provincial and local governments will also have an equal role in ensuring the effective implementation of this action plan.
